Suppose we want to test if a random sample xi, (I = 1, 2, ., n) has been drawn from a normal population with a specified variance σ2 = σ 02,
Under the null hypothesis that the population variance is σ2 = σ 02, the statistic
Follows chi-square distribution with (n-1) degrees of freedom.
By comparing the calculated value with the tabulated value of x2for (n-1) degrees of freedom at certain level of significance, we may retain or reject the null hypothesis.
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